Nifty hits highest closing level in more than 11 months
Stocks of pharmaceutical companies and public sector firms led gains for key benchmark indices. The barometer index, the S&P BSE Sensex, rose 128.27 points or 0.46% to settle at 27,915.89. The Nifty 50 index rose 37.30 points or 0.44% to settle at 8,565.85. The Sensex hit its highest closing level in almost a week. The Nifty hit its highest closing level in more than eleven months. Gains in European stocks aided the upmove on the domestic bourses.
The Sensex and Nifty rose for the second straight trading session.
Stocks of public sector banks witnessed a mixed trend. Stocks of private sector banks rose on reports that the government is reconsidering a proposal to allow up to 100% foreign direct investment (FDI) in private sector banks. Oil sector stocks extended previous trading session's gains.
IT major Wipro edged lower after reporting weak Q1 June 2016 results. UltraTech Cement extended gains registered during the previous trading session triggered by the company's strong Q1 June 2016 results. Bharat Heavy Electricals (Bhel) rose after the company successfully commissioned the third unit of the 160 megawatts (MW) Teesta Low Dam Hydro Electric Project (HEP) Stage-IV in West Bengal. Aurobindo Pharma edged higher after the company announced that it received final approval from the US Food & Drug Administration (USFDA) to manufacture and market Rosuvastatin Calcium Tablets in four strengths.
In overseas markets, European stocks edged higher as investors struck a cautiously optimistic tone ahead of the European Central Bank's (ECB) policy meeting tomorrow, 21 July 2016. The ECB is expected to keep monetary policy unchanged but market participants are looking forward to ECB President Mario Draghi's news conference for hints on future policy moves. Earlier during the global day, Asian stocks ended on a mixed note. In the US, the S&P 500 index pulled back from record highs yesterday, 19 July 2016, while the Dow Jones Industrials Average edged up for an eighth straight day of gains, as investors pondered mixed earnings reports. Data released yesterday, 19 July 2016, showed that housing starts rose 4.8% in June, a sign of steady improvement in the market for newly constructed homes.
The Sensex rose 128.27 points or 0.46% to settle at 27,915.89, its highest closing level since 14 July 2016. The index rose 147.56 points, or 0.53% at the day's high of 27,935.18. The index fell 27.91 points, or 0.1% at the day's low of 27,759.71.
The Nifty rose 37.30 points or 0.44% to settle at 8,565.85, its highest closing level since 6 August 2015. The index rose 41.35 points, or 0.48% at the day's high of 8,569.90. The index fell 16 points, or 0.19% at the day's low of 8,512.55.
The BSE Mid-Cap index rose 0.9%. The BSE Small-Cap index rose 0.99%. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was strong. On BSE, 1,671 shares rose and 1,026 shares declined. A total of 177 shares were unchanged.
The total turnover on BSE amounted to Rs 3185 crore, higher than turnover of Rs 2817.03 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Healthcare index (up 2.38%), the BSE Oil & Gas index (up 1.55%), the BSE Power index (up 1.5%) and the BSE Realty index (up 2.41%) outperformed the Sensex. The BSE Telecom index (down 0.09%), the BSE Auto index (up 0.32%) and the BSE Bankex index (up 0.27%) underperformed the Sensex.
Stocks of public sector banks witnessed a mixed trend. Punjab National Bank (down 1.52%), Bank of India (down 1.48%), Union Bank of India (down 0.62%) and Bank of Baroda (down 0.47%) edged lower. State Bank of India (up 0.52%), Indian Bank (up 0.29%), United Bank of India (up 1.28%) and IDBI Bank (up 0.2%) edged higher.
Stocks of private sector banks rose on reports that the government is reconsidering a proposal to allow up to 100% foreign direct investment (FDI) in private sector banks. IndusInd Bank (up 1.37%), Yes Bank (up 0.68%) and Kotak Mahindra Bank (up 0.5%) edged higher. ICICI Bank (down 0.58%) and Axis Bank (down 0.98%) edged lower.
Index heavyweight HDFC Bank was up 1.15% at Rs 1,232.10. The stock hit a high of Rs 1,237.25 and a low of Rs 1,226 in intraday trade.
The move to raise the FDI ceiling in the private sector banks will help them, as well as the upcoming payments and small finance banks tap overseas markets to raise their capital base, reports added. The government currently permits 74% FDI in private banks, with up to 49% allowed under the automatic route. Foreign holdings beyond 49% need to be cleared by the Foreign Investment Promotion Board (FIPB).
Oil sector stocks extended previous trading session's gains. Among public sector oil marketing companies (PSU OMCs), BPCL (up 0.5%), HPCL (up 1.24%) and Indian Oil Corporation (up 3.94%) edged higher.
Among oil exploration and production (E&P) stocks, Oil India (up 0.95%), ONGC (up 1.2%) and Cairn India (up 0.26%) edged higher.
Index heavyweight Reliance Industries (RIL) was up 0.7% at Rs 1,022.55. The stock hit a high of Rs 1,028.10 and a low of Rs 1,017 in intraday trade.
In the global commodities markets, Brent for September settlement was currently up 24 cents at $46.90 a barrel. The contract had fallen 30 cents or 0.63% to settle at $46.66 a barrel during the previous trading session.
Stocks of PSU companies edged higher. Coal India (up 3.23%), GAIL (India) (up 2.48%), Shipping Corporation of India (up 2.31%), Rural Electrification Corporation (up 2%), Power Finance Corporation (up 1.68%), Container Corporation of India (up 1.48%) and Power Grid Corporation of India (up 0.93%) rose. Steel Authority of India (down 1.24%) and National Aluminium Company (down 2.05%) edged lower.
Bharat Heavy Electricals (Bhel) rose 3.41% at Rs 144.25 after the company successfully commissioned the third unit of the 160 megawatts (MW) Teesta Low Dam Hydro Electric Project (HEP) Stage-IV in West Bengal. The greenfield project located in Darjeeling district of West Bengal, Teesta HEP is being set up by National Hydroelectric Power Corporation (NHPC), on the River Teesta. The fourth and final unit of the project is also in advanced stages of execution. The order for electrical & mechanical (E&M) works for four units of 40 MW each was placed on Bhel by NHPC. Bhel is presently executing hydro electric projects of around 3,300 MW in the country which are under various stage of implementation. The announcement was made during market hours today, 20 July 2016.
Pharmaceutical shares were in demand. Wockhardt (up 12.69%), Cadila Healthcare (up 4.45%), Alkem Laboratories (up 4.59%), Strides Shasun (up 3.88%), IPCA Laboratories (up 3.23%), Divi's Laboratories (up 2.64%), Dr Reddy's Laboratories (up 2.74%), Cipla (up 2.39%) and Lupin (up 1.37%) edged higher. GlaxoSmithKline Pharmaceuticals fell 0.5%.
Glenmark Pharmaceuticals rose 2.39% after the company announced during trading hours today, 20 July 2016, that Glenmark Pharmaceuticals Inc., USA has been granted final approval by the United States Food & Drug Administration (USFDA) for Rosuvastatin Calcium Tablets, 5 mg (base), 10 mg (base), 20 mg (base), and 40 mg (base), the generic version of Crestor Tablets, 5 mg, 10mg, 20mg and 40mg of IPR Pharmaceuticals, Inc. (IPR). According to IMS Health data for the 12 month period ended May 2016, the Rosuvastatin Calcium Tablets, 5 mg (base), 10 mg (base), 20 mg (base), and 40 mg (base) achieved annual sales of approximately $6.78 billion.
Aurobindo Pharma rose 5.09% after the company announced during trading hours today, 20 July 2016, that it received final approval from the US Food & Drug Administration (USFDA) to manufacture and market Rosuvastatin Calcium Tablets, 5 mg (base), 10 mg (base), 20 mg (base) and 40 mg (base). Aurobindo was one of the first Abbreviated New Drug Application (ANDA) applicants to submit a substantially complete ANDA with a paragraph IV certification and therefore Aurobindo is eligible for 180 days of generic drug shared exclusivity. The product has been launched in the US market. The approved ANDA is bioequivalent and therapeutically equivalent to the reference listed drug product (RLD) Crestor (rosuvastatin calcium) Tablets 5 mg, 10 mg, 20 mg and 40 mg of IPR Pharmaceuticals Inc.
This is the 112th ANDA (including 19 tentative approvals) to be approved out of Unit III formulation facility in Hyderabad, India for manufacturing oral non-antibiotic products. Aurobindo now has a total of 274 ANDA approvals (234 final approvals including 13 from Aurolife Pharma LLC and 40 tentative approvals) from USFDA.
Sun Pharmaceutical Industries rose 1.89% after the company announced that one of its subsidiaries received final approval from the US drug regulator for generic version of Crestor. The announcement was made during market hours today, 20 July 2016.
IT major Wipro edged lower after reporting weak Q1 June 2016 results. The stock fell 1.97% to Rs 538.60. Wipro's consolidated net profit attributable to equity holders fell 6.38% to Rs 2051.80 crore on 11.12% growth in gross revenue to Rs 13599.20 crore in Q1 June 2016 over Q1 June 2015. The results are as per International Financial Reporting Standards (IFRS). Revenue from IT services business rose 2.6% to $1,930.8 million in Q1 June 2016 over Q4 March 2016. Non-GAAP constant currency IT services segment revenue in dollar terms grew 2% sequentially and 9.5% on year-on-year basis. The company announced the first quarter results after trading hours yesterday, 19 July 2016.
A muted revenue guidance from the company for Q2 September 2016 also weighed on the counter. Wipro expects 0.01% to 0.99% growth in revenue from IT services business at between $1,931 million to $1,950 million in Q2 September 2016 over Q1 June 2016. Wipro's management expects the trajectory of growth to build gradually over the course of the year based on execution with regard to the company's strategic themes and as the company makes progress towards achieving a sustainable growth trajectory.
Meanwhile, Wipro and Viteos Group have cancelled the definitive agreement signed in December 2015 whereby Wipro had agreed to acquire Viteos Group. Wipro said in a statement that both the parties have decided not to proceed with the deal due to inordinate delays in completion of closing conditions that exceeded the target closing date under the terms of the agreement.
UltraTech Cement extended gains registered during the previous trading session triggered by the company's strong Q1 June 2016 results. The stock rose 1.54% at Rs 3,559.75. UltraTech Cement's consolidated net profit rose 29% to Rs 780 crore on 4% growth in net sales to Rs 6538 crore in Q1 June 2016 over Q1 June 2015. The result was announced during market hours yesterday, 19 July 2016.
The Sensex and Nifty rose for second straight session. The Sensex has gained 169.23 points or 0.6% in two trading sessions from its close of 27,746.66 on 18 July 2016. The Sensex has risen 916.17 points or 3.39% in this month so far (till 20 July 2016). The Sensex has risen 1,798.35 points or 6.88% in calendar year 2016 so far (till 20 July 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 5,421.28 points or 24.1%. The Sensex is off 662.44 points or 2.31% from a 52-week high of 28,578.33 hit on 23 July 2015. The Sensex is off 2,108.85 points or 7.02% from a record high of 30,024.74 hit on 4 March 2015.
The Sensex and Nifty rose for the second straight trading session.
Stocks of public sector banks witnessed a mixed trend. Stocks of private sector banks rose on reports that the government is reconsidering a proposal to allow up to 100% foreign direct investment (FDI) in private sector banks. Oil sector stocks extended previous trading session's gains.
IT major Wipro edged lower after reporting weak Q1 June 2016 results. UltraTech Cement extended gains registered during the previous trading session triggered by the company's strong Q1 June 2016 results. Bharat Heavy Electricals (Bhel) rose after the company successfully commissioned the third unit of the 160 megawatts (MW) Teesta Low Dam Hydro Electric Project (HEP) Stage-IV in West Bengal. Aurobindo Pharma edged higher after the company announced that it received final approval from the US Food & Drug Administration (USFDA) to manufacture and market Rosuvastatin Calcium Tablets in four strengths.
In overseas markets, European stocks edged higher as investors struck a cautiously optimistic tone ahead of the European Central Bank's (ECB) policy meeting tomorrow, 21 July 2016. The ECB is expected to keep monetary policy unchanged but market participants are looking forward to ECB President Mario Draghi's news conference for hints on future policy moves. Earlier during the global day, Asian stocks ended on a mixed note. In the US, the S&P 500 index pulled back from record highs yesterday, 19 July 2016, while the Dow Jones Industrials Average edged up for an eighth straight day of gains, as investors pondered mixed earnings reports. Data released yesterday, 19 July 2016, showed that housing starts rose 4.8% in June, a sign of steady improvement in the market for newly constructed homes.
The Sensex rose 128.27 points or 0.46% to settle at 27,915.89, its highest closing level since 14 July 2016. The index rose 147.56 points, or 0.53% at the day's high of 27,935.18. The index fell 27.91 points, or 0.1% at the day's low of 27,759.71.
The Nifty rose 37.30 points or 0.44% to settle at 8,565.85, its highest closing level since 6 August 2015. The index rose 41.35 points, or 0.48% at the day's high of 8,569.90. The index fell 16 points, or 0.19% at the day's low of 8,512.55.
The BSE Mid-Cap index rose 0.9%. The BSE Small-Cap index rose 0.99%. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was strong. On BSE, 1,671 shares rose and 1,026 shares declined. A total of 177 shares were unchanged.
The total turnover on BSE amounted to Rs 3185 crore, higher than turnover of Rs 2817.03 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Healthcare index (up 2.38%), the BSE Oil & Gas index (up 1.55%), the BSE Power index (up 1.5%) and the BSE Realty index (up 2.41%) outperformed the Sensex. The BSE Telecom index (down 0.09%), the BSE Auto index (up 0.32%) and the BSE Bankex index (up 0.27%) underperformed the Sensex.
Stocks of public sector banks witnessed a mixed trend. Punjab National Bank (down 1.52%), Bank of India (down 1.48%), Union Bank of India (down 0.62%) and Bank of Baroda (down 0.47%) edged lower. State Bank of India (up 0.52%), Indian Bank (up 0.29%), United Bank of India (up 1.28%) and IDBI Bank (up 0.2%) edged higher.
Stocks of private sector banks rose on reports that the government is reconsidering a proposal to allow up to 100% foreign direct investment (FDI) in private sector banks. IndusInd Bank (up 1.37%), Yes Bank (up 0.68%) and Kotak Mahindra Bank (up 0.5%) edged higher. ICICI Bank (down 0.58%) and Axis Bank (down 0.98%) edged lower.
Index heavyweight HDFC Bank was up 1.15% at Rs 1,232.10. The stock hit a high of Rs 1,237.25 and a low of Rs 1,226 in intraday trade.
The move to raise the FDI ceiling in the private sector banks will help them, as well as the upcoming payments and small finance banks tap overseas markets to raise their capital base, reports added. The government currently permits 74% FDI in private banks, with up to 49% allowed under the automatic route. Foreign holdings beyond 49% need to be cleared by the Foreign Investment Promotion Board (FIPB).
Oil sector stocks extended previous trading session's gains. Among public sector oil marketing companies (PSU OMCs), BPCL (up 0.5%), HPCL (up 1.24%) and Indian Oil Corporation (up 3.94%) edged higher.
Among oil exploration and production (E&P) stocks, Oil India (up 0.95%), ONGC (up 1.2%) and Cairn India (up 0.26%) edged higher.
Index heavyweight Reliance Industries (RIL) was up 0.7% at Rs 1,022.55. The stock hit a high of Rs 1,028.10 and a low of Rs 1,017 in intraday trade.
In the global commodities markets, Brent for September settlement was currently up 24 cents at $46.90 a barrel. The contract had fallen 30 cents or 0.63% to settle at $46.66 a barrel during the previous trading session.
Stocks of PSU companies edged higher. Coal India (up 3.23%), GAIL (India) (up 2.48%), Shipping Corporation of India (up 2.31%), Rural Electrification Corporation (up 2%), Power Finance Corporation (up 1.68%), Container Corporation of India (up 1.48%) and Power Grid Corporation of India (up 0.93%) rose. Steel Authority of India (down 1.24%) and National Aluminium Company (down 2.05%) edged lower.
Bharat Heavy Electricals (Bhel) rose 3.41% at Rs 144.25 after the company successfully commissioned the third unit of the 160 megawatts (MW) Teesta Low Dam Hydro Electric Project (HEP) Stage-IV in West Bengal. The greenfield project located in Darjeeling district of West Bengal, Teesta HEP is being set up by National Hydroelectric Power Corporation (NHPC), on the River Teesta. The fourth and final unit of the project is also in advanced stages of execution. The order for electrical & mechanical (E&M) works for four units of 40 MW each was placed on Bhel by NHPC. Bhel is presently executing hydro electric projects of around 3,300 MW in the country which are under various stage of implementation. The announcement was made during market hours today, 20 July 2016.
Pharmaceutical shares were in demand. Wockhardt (up 12.69%), Cadila Healthcare (up 4.45%), Alkem Laboratories (up 4.59%), Strides Shasun (up 3.88%), IPCA Laboratories (up 3.23%), Divi's Laboratories (up 2.64%), Dr Reddy's Laboratories (up 2.74%), Cipla (up 2.39%) and Lupin (up 1.37%) edged higher. GlaxoSmithKline Pharmaceuticals fell 0.5%.
Glenmark Pharmaceuticals rose 2.39% after the company announced during trading hours today, 20 July 2016, that Glenmark Pharmaceuticals Inc., USA has been granted final approval by the United States Food & Drug Administration (USFDA) for Rosuvastatin Calcium Tablets, 5 mg (base), 10 mg (base), 20 mg (base), and 40 mg (base), the generic version of Crestor Tablets, 5 mg, 10mg, 20mg and 40mg of IPR Pharmaceuticals, Inc. (IPR). According to IMS Health data for the 12 month period ended May 2016, the Rosuvastatin Calcium Tablets, 5 mg (base), 10 mg (base), 20 mg (base), and 40 mg (base) achieved annual sales of approximately $6.78 billion.
Aurobindo Pharma rose 5.09% after the company announced during trading hours today, 20 July 2016, that it received final approval from the US Food & Drug Administration (USFDA) to manufacture and market Rosuvastatin Calcium Tablets, 5 mg (base), 10 mg (base), 20 mg (base) and 40 mg (base). Aurobindo was one of the first Abbreviated New Drug Application (ANDA) applicants to submit a substantially complete ANDA with a paragraph IV certification and therefore Aurobindo is eligible for 180 days of generic drug shared exclusivity. The product has been launched in the US market. The approved ANDA is bioequivalent and therapeutically equivalent to the reference listed drug product (RLD) Crestor (rosuvastatin calcium) Tablets 5 mg, 10 mg, 20 mg and 40 mg of IPR Pharmaceuticals Inc.
This is the 112th ANDA (including 19 tentative approvals) to be approved out of Unit III formulation facility in Hyderabad, India for manufacturing oral non-antibiotic products. Aurobindo now has a total of 274 ANDA approvals (234 final approvals including 13 from Aurolife Pharma LLC and 40 tentative approvals) from USFDA.
Sun Pharmaceutical Industries rose 1.89% after the company announced that one of its subsidiaries received final approval from the US drug regulator for generic version of Crestor. The announcement was made during market hours today, 20 July 2016.
IT major Wipro edged lower after reporting weak Q1 June 2016 results. The stock fell 1.97% to Rs 538.60. Wipro's consolidated net profit attributable to equity holders fell 6.38% to Rs 2051.80 crore on 11.12% growth in gross revenue to Rs 13599.20 crore in Q1 June 2016 over Q1 June 2015. The results are as per International Financial Reporting Standards (IFRS). Revenue from IT services business rose 2.6% to $1,930.8 million in Q1 June 2016 over Q4 March 2016. Non-GAAP constant currency IT services segment revenue in dollar terms grew 2% sequentially and 9.5% on year-on-year basis. The company announced the first quarter results after trading hours yesterday, 19 July 2016.
A muted revenue guidance from the company for Q2 September 2016 also weighed on the counter. Wipro expects 0.01% to 0.99% growth in revenue from IT services business at between $1,931 million to $1,950 million in Q2 September 2016 over Q1 June 2016. Wipro's management expects the trajectory of growth to build gradually over the course of the year based on execution with regard to the company's strategic themes and as the company makes progress towards achieving a sustainable growth trajectory.
Meanwhile, Wipro and Viteos Group have cancelled the definitive agreement signed in December 2015 whereby Wipro had agreed to acquire Viteos Group. Wipro said in a statement that both the parties have decided not to proceed with the deal due to inordinate delays in completion of closing conditions that exceeded the target closing date under the terms of the agreement.
UltraTech Cement extended gains registered during the previous trading session triggered by the company's strong Q1 June 2016 results. The stock rose 1.54% at Rs 3,559.75. UltraTech Cement's consolidated net profit rose 29% to Rs 780 crore on 4% growth in net sales to Rs 6538 crore in Q1 June 2016 over Q1 June 2015. The result was announced during market hours yesterday, 19 July 2016.
The Sensex and Nifty rose for second straight session. The Sensex has gained 169.23 points or 0.6% in two trading sessions from its close of 27,746.66 on 18 July 2016. The Sensex has risen 916.17 points or 3.39% in this month so far (till 20 July 2016). The Sensex has risen 1,798.35 points or 6.88% in calendar year 2016 so far (till 20 July 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 5,421.28 points or 24.1%. The Sensex is off 662.44 points or 2.31% from a 52-week high of 28,578.33 hit on 23 July 2015. The Sensex is off 2,108.85 points or 7.02% from a record high of 30,024.74 hit on 4 March 2015.
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